Woodside completes $2.1b Scarborough sale to JERA
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The news: Woodside Energy has completed the sale of a 15.1% interest in the Scarborough LNG joint venture to Japan's largest power generation company JERA.
The numbers: Woodside will receive sale proceeds of around USD1.4 billion ($2.13 billion) for equity in the Scarborough joint venture, comprising the purchase price and reimbursed expenditure.
Woodside will retain a 74.9% interest in the joint venture and remain as operator.
The context: Woodside agreed to sell the 15.1% stake to JERA in February, as part of an expanded relationship between the companies.
The Perth-headquartered energy group said work on the Scarborough energy project is now "almost three-quarters" complete, and remains on track for targeted first LNG cargo in 2026.
The Scarborough field is located around 375km off the coast of Karratha in Western Australia.
What they said: "Participation in the Scarborough joint venture is a key part of our strong and highly valued strategic relationship with JERA," said Woodside CEO Meg O'Neill.
"That relationship reflects our shared view that gas will play an important role in the global energy transition for decades to come.
"This latest sale of equity in Scarborough again underlines the long-term value Japanese customers like JERA are placing on gas and the significance of LNG in Japan and the region's energy security.
"In addition to supplying markets in north Asia, the project will be an important source of gas for the domestic market in Western Australia."
The source: ASX announcement
